Okay, so you’ve decided. You are going to expand your property portfolio. You are motivated, ready to take on the challenge and really you just want to get started! So, where do you start?
Now, while being super enthusiastic is a great start, it’s important to consult the experts and make sure your financial position is secure. Take your time. This is a massive investment not just financially but emotionally and physically. Your down time will be spent going over finances, organising inspections and weighing up cash flow vs. capital growth. Even though at first it might seem like a daunting task, the benefit will pay off when you’ve finally succeeded in building your portfolio and accumulating equity. Here are a few other things to consider:
1. You can’t do everything yourself.
Hire the right people to make your workload less intense. Smartline Rockingham Mortgage Brokers can help you find a great deal on your property loan interest rate. Also think about hiring a property manager, accountant and when the time comes – a handyman to fix the maintenance issues. At the start it might seem like a straightforward task but once your have a few investment properties handling the day to day tasks associated with the property will become a fulltime job.
2. Don’t rush.
Whether it’s buying a property, renting it out or selling it – you shouldn’t rush any steps. You don’t have to buy the first property you see, or rent it out immediately. Getting a good understanding and feel for the market requires going to a fair few open houses and inspections.
3. Have an emergency fund.
Things are bound to pop up and it’s naive to think that they won’t. Whether it’s getting a property ready for a tenant, paying to have something repaired or simply paying a solicitor, broker or agent it’s always good to have back up funds to support your investments. A good way to account for expenses is taking a portion of your rental profits each month and putting them into a separate account, just in case.
4. Become an expert.
Take on the task of becoming the ultimate real estate guru. The more you know, the better equipped you are to handle what your property portfolio might throw at you.